Collections Account. (a) All payments on Accounts and other Collateral shall be forwarded by Borrower to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole discretion, may require Borrower to establish a lockbox under the control of Bank to which all Account Debtors shall forward payments on the Accounts. Borrower shall pay all of Bank's standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, Borrower shall notify Account Debtors on the Accounts to forward payments on the Accounts to the lockbox; provided, however, that Bank shall have the right to directly contact Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower on Accounts and sale of Inventory and other Collateral shall be held by Borrower in trust for Bank and not commingled with Borrower's funds and shall be deposited promptly by Borrower to the Collections Account. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by Borrower. Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in the lockbox and the Collections Account as collateral for the Indebtedness. (b) Borrower hereby irrevocably appoints Bank (and any duly authorized Person designated by Bank) as Borrower's attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, Borrower's name on any checks, drafts, money orders or other media of payment which come into Bank's possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain outstanding. Such endorsement by Bank under power of attorney shall, for all purposes, be deemed to have been made by Borrower (prior to any subsequent endorsement by Bank) in negotiation of the item. (c) For the purpose of calculating interest due under this Agreement, payment items shall be deemed applied by Bank on account of the Loan as collected by Bank, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Samples: Revolving Credit and Security Agreement (JPS Industries Inc)
Collections Account. (a) All payments on Accounts and other Collateral shall be forwarded by Borrower Borrowers to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole discretion, discretion may also require Borrower Borrowers to establish a lockbox under the control of Bank to which all applicable Account Debtors shall forward payments on the Accounts. Borrower Borrowers shall pay all of Bank's ’s standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, Borrower Borrowers shall notify applicable Account Debtors on the Accounts to forward payments on the Accounts to the lockbox; provided, however, that that, upon the occurrence and during the continuance of an Event of Default and at all times thereafter until such Event of Default has been cured as determined by Bank in its Permitted Discretion, Bank shall have the right to directly contact such Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower Borrowers on Accounts and sale of Inventory and other Collateral shall be held by Borrower Borrowers in trust for Bank and not commingled with Borrower's ’s funds and shall be deposited promptly by Borrower Borrowers to the Collections Account. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by BorrowerBorrowers. Borrower Borrowers hereby grants grant to Bank a security interest in and lien upon all items and balances held in any lockbox, the lockbox Disbursements Account and the Collections Account as collateral Collateral for the IndebtednessObligations, in addition to and cumulative with the general security interest in all assets of Borrowers (including all Deposit Accounts) contained in Section 9.1 hereof.
(b) Borrower hereby irrevocably appoints Bank (and any duly authorized Person designated by Bank) as Borrower's attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, Borrower's name on any checks, drafts, money orders or other media of payment which come into Bank's possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain outstanding. Such endorsement by Bank under power of attorney shall, for all purposes, be deemed to have been made by Borrower (prior to any subsequent endorsement by Bank) in negotiation of the item.
(c) For the purpose of calculating interest due under this Agreement, payment items shall be deemed applied by Bank on account of the Loan as collected by Bank, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Collections Account. (a) All payments on Accounts and other Collateral shall be forwarded by Borrower to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole discretion, may require Borrower to establish a lockbox under the control of Bank to which all Account Debtors shall forward payments on the Accounts. Borrower shall pay all of Bank's standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, Borrower shall notify Account Debtors on the Accounts to forward payments on the Accounts to the lockbox; provided, however, that Bank shall have the right to directly contact Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower on Accounts and sale of Inventory and other Collateral shall be held by Borrower in trust for Bank and not commingled with Borrower's funds and shall be deposited promptly by Borrower to the Collections Account. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by Borrower. Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in the lockbox and the Collections Account as collateral for the Indebtedness.
(b) Borrower hereby irrevocably appoints Bank (and any duly authorized Person designated by Bank) as Borrower's attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, endorse Borrower's name on any checks, drafts, money orders or other media of payment which come into Bank's possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain outstanding. Such endorsement by Bank under power of attorney shall, for all purposes, be deemed to have been made by Borrower (prior to any subsequent endorsement by Bank) in negotiation of the item.
(c) For the purpose of calculating interest due under this Agreement, payment items shall be deemed applied by Bank on account of the Revolving Loan as collected by Bank, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Samples: Loan and Security Agreement (Bradley Pharmaceuticals Inc)
Collections Account. (a) All payments on Borrower shall instruct all Account Debtors and other Persons obligated in respect of Accounts and other Collateral shall to make all payments in respect of the Accounts or other Collateral directly to Lender (by instructing that such payments be forwarded by Borrower remitted to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole discretion, may require Borrower to establish a lockbox post office box under the control of Bank Lender). All such payments made to which all Account Debtors Lender through the post office box shall forward payments on be deposited in the AccountsCollections Account. Borrower shall pay all of BankLender's standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account arrangement; as such fees and charges may change from time to time. In Borrower further agrees that if the event Bank requires a lockbox arrangement hereunderproceeds of any Collateral (including the payments made in respect of Accounts) shall be received by it, Borrower shall, as promptly as possible, deposit such proceeds in the Demand Deposit Account as soon as received. Until so deposited, all such proceeds shall notify Account Debtors be held in trust by Borrower for and as the property of Lender and shall not be commingled with any other funds or property of Borrower. Borrower hereby irrevocably authorizes and empowers Lender, its officers, employees and authorized agents to endorse and sign its name on the Accounts all checks, drafts, money orders or other media of payment so delivered, and such endorsements or assignments shall, for all purposes, be deemed to forward payments on the Accounts have been made by Borrower prior to any endorsement or assignment thereof by Lender.
(b) If Borrower subscribes to Lender's cash management services and such services are applicable to the Loan, the terms of such services, as set forth in the Blocked Account Agreement, shall control the manner in which funds are transferred between the Demand Deposit Account and the Loan for credit or debit to the Loan.
(c) For the purpose of calculating interest due under this Agreement, payment items shall be deemed applied by Lender on account of the Loan two Business Days after receipt in the lockbox, subject to chargebacks for uncollected payment items. No payment item received by Lender shall constitute payment to Lender until such item is actually collected by Lender and credited to the Collections Account; provided, however, that Bank Lender shall have the right to directly contact Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower on Accounts and sale of Inventory and other Collateral shall be held by Borrower in trust for Bank and not commingled with Borrower's funds and shall be deposited promptly by Borrower charge back to the Collections Account. All , the Demand Deposit Account (or any other account of Borrower maintained at Lender) any item which is returned for inability to collect, plus accrued interest during the period of Lender's provisional credit for such items shall be the exclusive property item prior to receiving notice of Bank upon the earlier of the receipt thereof by Bank or by Borrower. Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in the lockbox and the Collections Account as collateral for the Indebtednessdishonor.
(bd) Borrower hereby irrevocably appoints Bank Lender (and any duly authorized Person designated by BankLender) as Borrower's attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, endorse Borrower's name on any checks, drafts, money orders or other media of payment which come into BankLender's possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain outstanding. Such endorsement by Bank Lender under power of attorney shall, for all purposes, be deemed to have been made by Borrower (prior to any subsequent endorsement by Bankthe Lender) in negotiation of the item.
(c) For the purpose of calculating interest due under this Agreement, payment items shall be deemed applied by Bank on account of the Loan as collected by Bank, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Samples: Revolving Credit, Equipment Loan and Security Agreement (Transact Technologies Inc)
Collections Account. (a) All If required by Bank in its reasonable discretion, all payments on Accounts and other Collateral shall be forwarded by Borrower to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole reasonable discretion, may require Borrower to establish a lockbox under the control of Bank to which all Account Debtors shall forward payments on the Accounts. Borrower shall pay all of Bank's standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, Borrower shall notify Account Debtors on the Accounts to forward payments on the Accounts to the lockbox; provided, however, that Bank shall have the right to directly contact Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower on Accounts and sale of Inventory and other Collateral shall be held by Borrower in trust for Bank and not commingled with Borrower's funds and shall be deposited promptly by Borrower to the Collections Account. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by Borrower. Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in the lockbox and the Collections Account as collateral for the Indebtedness.
(b) Borrower hereby irrevocably appoints Bank (and any duly authorized Person designated by Bank) as Borrower's attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, endorse Borrower's name on any checks, drafts, money orders or other media of payment which come into Bank's possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain outstanding. Such endorsement by Bank under power of attorney shall, for all purposes, be deemed to have been made by Borrower (prior to any subsequent endorsement by Bank) in negotiation of the item.
(c) For the purpose of calculating interest due under this Agreement, payment items received into the Collections Account shall be deemed applied on the date of receipt by Bank on account of the Loan as collected by Bank, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Samples: Revolving Credit and Security Agreement (Intelligroup Inc)
Collections Account. (a) All payments on Accounts and other Collateral shall be forwarded by Borrower on each Business Day to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole discretion, may require Borrower to establish Borrowers shall maintain a lockbox under the control of Bank to which all Account Debtors shall forward payments on the Accounts. Borrower Borrowers shall pay all of Bank's ’s standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, Borrower Borrowers shall notify Account Debtors on the Accounts to forward payments on the Accounts to the lockbox; provided, however, that Bank shall have the right (with the prior permission of Borrowers unless an Event of Default exists) to directly contact Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower Borrowers on Accounts and sale of Inventory and other Collateral shall be held by Borrower Borrowers in trust for Bank and not commingled with Borrower's Borrowers’ funds and shall be deposited promptly by Borrower Borrowers to the Collections Account. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by BorrowerBorrowers. Each Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in the lockbox and the Collections Account as collateral for the Indebtedness. If Borrowers shall maintain any depository accounts at a financial institution other than Bank, then, at the request of Bank, Borrowers shall execute and deliver, and shall cause such financial institution to execute and deliver, to Bank, a deposit account control agreement, in form and substance satisfactory in all respects to Bank, that provides Bank with exclusive control over such account and that requires such financial institution to wire transfer to Bank all proceeds of Collateral.
(b) Each Borrower hereby irrevocably appoints Bank (and any duly authorized Person designated by Bank) as such Borrower's ’s attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, endorse such Borrower's ’s name on any checks, drafts, money orders or other media of payment which come into Bank's ’s possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain (or Commitment therefor) remains outstanding. Such endorsement by Bank under power of attorney shall, for all purposes, be deemed to have been made by Borrower Borrowers (prior to any subsequent endorsement by Bank) in negotiation of the item.
(c) For Payment items received into the purpose of calculating interest due under this Agreement, payment items Collections Account shall be deemed applied by Bank on account of the Loan as collected Revolver Loans the day after deposited by BankBorrowers, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of any Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's ’s provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Collections Account. (a) All payments on Accounts and other Collateral Within a reasonable time following the funding of the Term Loans, the Borrower shall be forwarded by Borrower to the Collections Account; provided, however, upon the occurrence of an Event of Default and so long as an Event of Default is continuing, Bank, in its sole discretion, may require Borrower to establish a lockbox under the control of Bank to which all Account Debtors shall forward payments on the Accounts. Borrower shall pay all of Bank's ’s standard fees and charges in connection with such lockbox arrangement (if any) and Collections Account as such fees and charges may change from time to time. In the event Bank requires a lockbox arrangement hereunder, Borrower shall notify Account Debtors on the Accounts to forward payments on the Accounts to the lockbox; provided, however, that Bank shall have the right to directly contact Account Debtors at any time following the occurrence of an Event of Default and so long as an Event of Default is continuing, to ensure that payments on the Accounts are directed to the lockbox. All payment items received by Borrower on Accounts and sale of Inventory and other Collateral shall be held by Borrower in trust for Bank and not commingled with Borrower's ’s funds and shall be deposited promptly by Borrower to the Collections Account. All such items shall be the exclusive property of Bank upon the earlier of the receipt thereof by Bank or by Borrower. Borrower hereby grants to Bank a security interest in and lien upon all items and balances held in the lockbox and the Collections Account as collateral for the Indebtedness.
(b) Borrower hereby irrevocably appoints Bank (and any duly authorized Person designated by Bank) as Borrower's ’s attorney-in-fact to endorse, following the occurrence of an Event of Default and so long as an Event of Default is continuing, endorse Borrower's ’s name on any checks, drafts, money orders or other media of payment which come into Bank's ’s possession or control; this power being coupled with an interest is irrevocable so long as any of the Indebtedness remain outstanding. Such endorsement by Bank under power of attorney shall, for all purposes, be deemed to have been made by Borrower (prior to any subsequent endorsement by Bank) in negotiation of the item.
(c) For the purpose of calculating interest due under this Agreement, payment items received into the Collections Account shall be deemed applied by Bank on account of the Loan as collected by Bank, subject to chargebacks for uncollected payment items. No payment item received by Bank shall constitute payment to Bank until such item is actually collected by Bank and credited to the Collections Account; provided, however, Bank shall have the right to charge back to the Collections Account (or any other account of Borrower maintained at Bank) any item which is returned for inability to collect, plus accrued interest during the period of Bank's ’s provisional credit for such item prior to receiving notice of dishonor.
Appears in 1 contract
Samples: Revolving and Term Credit and Security Agreement (Aerosonic Corp /De/)